ARDEN HILLS, Minn., Dec. 17 /PRNewswire/ -- Control Data Systems, Inc. (NASDAQ: CDAT) and Japan's NEC Corporation announced today they have finalized an agreement for NEC to purchase approximately five percent of Control Data Systems' stock. NEC will purchase 623,800 shares of Control Data stock for $5,271,110 effective Dec. 18, 1992.
The equity investment results from the growing relationship between Control Data and NEC, which will include an original equipment manufacturer (OEM) marketing agreement for Control Data to sell NEC's UNIX RISC products throughout the United States, Europe, and Asia. Control Data will utilize the new, MIPS R4000-based NEC systems as part of its systems integration strategy in the rapidly-developing client- server market.
Control Data and NEC will work together to ensure that NEC's new product line meets a variety of requirements specific to various world markets. Further details of the agreement will be announced later in 1993 when NEC officially unveils this product line.
"We are very pleased to finalize this equity relationship with NEC, which signals our companies' mutual desire for a long-term partnership," said Jim Ousley, president and chief executive officer of Control Data Systems. "This unique, mutually beneficial relationship represents a new level of cooperation between U.S. and Japanese high-tech companies. Control Data and NEC are both committed to a two-way exchange of expertise, marketing "know-how" and technology as it relates to the future success of the MIPS RISC architecture."
"Control Data Systems has a significant record of achievement in the marketing of open systems and systems integration solutions in North America and Europe," said Akira Kobayashi, senior vice president of NEC Corporation. "NEC is pleased to be able to make a contribution to the development of Control Data's business through supplying our UNIX-based products. Further, we believe this new agreement will have a positive impact on NEC's international business as well as the MIPS Group as a whole."
Control Data and NEC signed an initial marketing agreement in January 1992 for Control Data to sell NEC supercomputers in the U.S. and specific European countries. At that time, the companies indicated their desire for a broader relationship.
Control Data Systems, Inc. integrates high-performance computer solutions for management of large, complex databases and communications networks serving government and commercial markets. The company, located in Arden Hills, Minnesota, does business in 40 countries worldwide. Control Data's major strategic partners now include NEC Corporation; Silicon Graphics, Inc.; and Structural Dynamics Research Corporation (SDRC).
NEC Corporation is a world leader in communication, computer and semiconductor technologies. NEC's global high-technology presence includes 28 manufacturing affiliates with 30 plants in 16 countries and 67 marketing and sales affiliates in 28 countries outside Japan.
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/CONTACT: Charlotte Fransen of Control Data, 612-482-4857; or Mark Pearce of NEC, 011-81-3-3798-6511/
(CDAT)